Dell Technologies Inc - Class C
Q3 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.08%.
Did DELL Beat Earnings? Q3 2026 Results
Dell Technologies delivered a strong but nuanced third quarter in fiscal 2026, beating on profit while falling just short on the top line, as the AI server boom reshaped the company's financial profile in real time. Non-GAAP diluted EPS came in at $2.59, topping the $2.48 consensus by 4.46%, driven by record profitability in the quarter; revenue of $27.00 billion grew 10.8% year over year but missed the $27.29 billion estimate by 1.03%, largely because the explosive mix shift toward lower-margin AI server products compressed gross margin to 20.7% from 22.0%. The standout driver was the Infrastructure Solutions Group, where AI server orders hit a record $12.30 billion in the quarter alone, bringing the year-to-date total to an unprecedented $30.00 billion. <a href="https://247wallst.com/investing/2025/11/25/live-coverage-of-dells-q3-earnings/">As the quarter unfolded</a>, the AI backlog swelled to $18.40 billion, reinforcing Dell's confidence in raising full-year revenue guidance to a $111.70 billion midpoint, up 17%, with Q4 revenue guided to a $31.50 billion midpoint implying 32% year-over-year growth.
- Record AI server orders of $12.3 billion in Q3 with unprecedented $30 billion in orders year to date
- Servers and Networking revenue surged 37% YoY driven by AI demand
- Commercial Client revenue grew 5% YoY
- Product revenue grew 16% YoY while cost discipline reduced operating expenses 5%
- AI backlog of $18.4 billion with five-quarter pipeline at multiples of backlog
Forward Guidance & Outlook
Dell raised its full-year FY26 guidance: revenue is now expected between $111.2 billion and $112.2 billion (midpoint $111.7 billion), up 17% year over year, with AI server shipments raised to roughly $25 billion (up over 150%). Full-year non-GAAP diluted EPS is expected at $9.92 at the midpoint, up 22%. For Q4 FY26, revenue is expected between $31.0 billion and $32.0 billion (midpoint $31.5 billion), up 32% year over year, with non-GAAP diluted EPS of $3.50 at the midpoint, up 31%. GAAP diluted EPS is expected at $3.05 for Q4 and $8.38 for the full year.
DELL YoY Financials
DELL Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.